Which of the following statements is false?
A)Sunk costs are never relevant.
B)Sunk costs are costs that occurred in the past.
C)To be relevant,a cost must be an opportunity cost.
D)To be relevant,a cost must occur in the future.

Question

Quizplus · Accepted Answer

Sunk costs are indeed costs that have already occurred and cannot be recovered, making them irrelevant for future decision-making. However, not all relevant costs must be opportunity costs. Relevant costs can include any costs that will be affected by a decision, including direct costs, variable costs, and avoidable costs, not just opportunity costs.

Which of the Following Statements Is False